Starting a Business Series: Accounting Software

As a CPA, I am all for having great accounting records, financial statements, and accounting software. That being said, I believe far too many business owners rush into buying accounting software they just don’t need. Even to this date I do not use accounting software for our multiple businesses. There are certainly certain businesses that need accounting software from day one. If you carry inventory, track job costs, carry accounts receivable or payable, or if you do not have a sense of how to assemble accounting statements…you need accounting software today. However, if you have a general sense of accounting and your complexity does not require it then you may not need software just yet. For certain small businesses, adding accounting software to your list of things to do will only add complexity and data entry hours that you don’t need while you are working to grow your business. You should talk with your CPA or Enrolled Agent to determine the best path forward for your business (and your personal sanity).